We have audited the attached Balance Sheet of Sanghvi Movers Limited as
 at 31st March 2011 and also the Profit and Loss Account and the Cash
 Flow Statement for the year ended on that date, annexed thereto. These
 financial statements are the responsibility of the Company''s
 management. Our responsibility is to express an opinion on these
 financial statements based on our audit.
 
 We conducted our audit in accordance with auditing standards generally
 accepted in India. Those Standards require that we plan and perform the
 audit to obtain reasonable assurance about whether the financial
 statements are free from any material misstatement. An audit includes
 examining on a test basis, evidence supporting the amounts and
 disclosures in the financial statements. An audit also includes
 assessing the accounting principles used and significant estimates made
 by management, as well as evaluating the overall financial statement
 presentation.  We believe that our audit provides a reasonable basis
 for our opinion.
 
 As required by the Companies (Auditor''s Report) Order, 2003, issued by
 the Central Government in terms of sub- section (4A) of Section 227 of
 the Companies Act, 1956, we enclose in the Annexure a statement on the
 matters specified in paragraphs 4 and 5 of the said Order.
 
 Further to our comments in the Annexure referred to above, we report
 that -
 
 1) We have obtained all the information and explanations, which to the
 best of our knowledge and belief were necessary for the purpose of our
 audit;
 
 2) In our opinion, proper books of account as required by law have been
 kept by the Company so far as it appears from our examination of those
 books;
 
 3) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
 dealt with by this report are in agreement with the books of account of
 the Company;
 
 4) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
 Flow Statement dealt with by this report comply with accounting
 standards referred to in sub-section (3C) of Section 211 of the
 Companies Act, 1956;
 
 5) On the basis of representations made by the Directors of the Company
 and taken on record by the Board of Directors, we report that none of
 the Directors is disqualified as on 31st March 2011 from being
 appointed as a Director in terms of clause (g) of sub-section (1) of
 Section 274 of the Companies Act, 1956;
 
 6) In our opinion and to the best of our information and according to
 the explanations given to us, the said financial statements read
 together with the Notes forming part thereof, give the information
 required by the Companies Act, 1956, in the manner so required and
 present a true and fair view in conformity with the accounting
 principles generally accepted in India :
 
 a) in the case of Balance Sheet, of the state of affairs of the Company
 as at 31st March 2011;
 
 b) in the case of Profit and Loss Account, of the Profit for the year
 ended on that date; and
 
 c) in the case of Cash Flow Statement, of the cash flows for the year
 ended on that date.
 
 Annexure To The Auditors'' Report
 
 On the basis of such checks as we considered appropriate and on the
 basis of examination of records and in terms of the information and
 explanations given to us, we state that:
 
 (i) (a) The Company has maintained records showing full particulars
 including quantitative details of fixed assets, excepting the situation
 of movable fixed assets, which change with orders under execution.
 
 (b) The management has a programme of physically verifying major fixed
 assets which, in our opinion, is reasonable having regard to the size
 of the Company and the nature of its assets. No material discrepancies
 were reported on such verification.
 
 (c) The Company has not disposed off substantial part of fixed assets
 so as to affect its going concern status.
 
 (ii) (a) Physical Verification of inventory was conducted by the
 Management at the year end and was test checked by us.
 
 (b) The procedures of physical verification of inventory followed by
 the management are reasonable and adequate in relation to the size of
 the company and the nature of its business.
 
 (c) Records of inventory showing, quantity of receipts, issues and
 balances with dates of transactions are maintained. Stocks of inventory
 brought forward from last year and purchases made during the year which
 are unconsumed at year end have been valued and are properly dealt with
 in the books of account.
 
 (iii) (a) Other than unsecured loan of Rs. 640 lakhs taken from a
 company listed in the register maintained under section 301 of the
 Companies Act, 1956, the Company has not taken or granted any loans
 from companies, firms or other parties listed therein.
 
 (b) In our opinion, the rate of interest and other terms and conditions
 of the loan taken by the Company are prima facie not prejudicial to the
 interest of the Company.
 
 (c) The quantum of the loan which was called back was regularly repaid.
 Interest for the year is provided and is yet to be paid.
 
 (d) As on the balance sheet date, no amount was overdue for payment.
 
 (iv) In our opinion, there are generally adequate internal control
 procedures commensurate with the size of the company and nature of its
 business with regard to the purchase of consumables, stores, spares and
 fixed assets. The Company does not sell goods. We have not come across
 any instance of major weakness in the said internal controls.
 
 (v) (a) On the basis of audit procedures performed by us, we are of the
 opinion that the transactions in which Directors were interested and
 which were required to be entered in the register maintained under
 section 301 of the Companies Act, 1956, have been so entered.
 
 (b) Based on the information and explanation given to us, in our
 opinion, these transactions have been made at reasonable prices having
 regard to the prevailing market prices at the relevant time.
 
 (vi) The Company has not accepted any deposits from public, hence
 clause (vi) of the Order does not apply.
 
 (vii) In our opinion, the internal audit system is commensurate with
 the size of the Company and the nature of its business.
 
 (viii) The Company is not required to maintain cost records under
 section 209(1)(d) of the Companies Act, 1956, except for its business
 of generation of electricity from wind power. We have broadly reviewed
 the prescribed accounts and records maintained.
 
 (ix) (a) The Company has been generally regular in depositing
 undisputed statutory dues including Provident Fund, Investor Education
 and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
 Wealth Tax, Customs Duty and other statutory dues with appropriate
 authorities. As per information and explanations given to us, no such
 undisputed statutory dues were in arrears as at 31st March 2011 for a
 period of more than six months from the date they became payable.
 
 (b) The disputed statutory dues which have not been deposited with the
 appropriate authorities are as under :
 
 Nature of Dues                Rs.in Lakhs  Forum where Dispute is being
                                            Contested
 
 Gujarat Motor Vehicles Tax        44.46    Gujarat High Court
 
 Employees State Insurance          1.75    Industrial Court, Pune
 
 Income Tax – TDS demands         135.11*   CIT(Appeals)-V, Pune
 
 Commercial Tax Officer, Gujarat  124.75 #  Gujarat Value Added Tax 
                                            Tribunal
 
 * These demands have been raised despite of regular payment of TDS.
 
 # Contention of CTO, Gujarat, is that VAT is payable @ 15% on same
 revenues on which service tax is being paid.
 
 (x) The Company has not incurred cash loss during the year nor does it
 have accumulated losses, hence clause (x) of the Order does not apply.
 
 (xi) The Company has not defaulted in repayment of its dues to any
 Bank, there being no borrowings from financial institutions or from
 debenture holders.
 
 (xii) The Company has not granted any loans or advances on the pledge
 of any securities, hence clause (xii) of the Order does not apply.
 
 (xiii) Clause (xiii) of the Order relating to chit funds does not apply
 to the Company.
 
 (xiv) The Company does not deal in shares, securities, debentures and
 other investments and accordingly clause (xiv) of the Order does not
 apply.
 
 (xv) The Company has not given any guarantee for loans taken by others
 from a bank, hence clause (xv) does not apply to the Company.
 
 (xvi) We state that the Company has generally applied the term loans
 received for the purposes they were obtained.
 
 (xvii) We state that on an overall basis, no funds raised on short-term
 basis have been applied by the Company for long-term investments.
 
 (xviii) During the year under review, no shares were allotted to
 parties or companies covered in the register maintained under section
 301 of the Companies Act, 1956.
 
 (xix) The Company has not issued any secured debentures and accordingly
 clause (xix) of the Order does not apply.
 
 (xx) During the year under review, the Company did not raise any money
 by way of a public issue of shares or securities, hence clause (xx) of
 the Order does not apply.
 
 (xxi) According to the information and explanations given to us and to
 the best of our knowledge and belief, no fraud on or by the Company,
 has been noticed or reported by the Company during the year.
 
 
                                            For L. M.  JOSHI & CO.
 
                                            Chartered Accountants
 
                                                F. No. 104403W
 
                                               Prasanna L. Joshi
 
 Pune:                                               Partner
 
 30th May 2011                                    M. No. 35097